On Wednesday, Todd Emmer and Darren Soto, both members of Congress, wrote a bipartisan letter asking Gary Gensler, Chair of the Securities & Exchange Commission to strongly question why the agency denied approval to create a Bitcoin spot ETF but allowed Bitcoin Futures ETFs trading to start.
A spot ETF holds the actual commodity, in this case bitcoin. However, a futures ETF funds holds contracts to buy or sell the commodity at a specific price at a future date.
Minnesota Republican Emmer stated in a press release that the letter was being published.
“The SEC’s approach towards cryptocurrency regulation is unacceptable. […] If they cannot clearly define the material risk profile differences, then they should permit ETFs to be traded based on spot Bitcoin.
Soto, a Democrat hailing from Florida, stated in the accompanying statement:
“Cryptocurrency is a powerful driver of economic growth in our country. It is therefore crucial that we clearly regulate it to maximize its potential benefits and minimize any risks. We must all work together to ensure investors have consistency.
ProShares Bitcoin Strategy ETF had the best October first-day natural volume ever. The SEC was expected by the federal government to lead efforts to regulate stablecoins. However, this is not the case. A proposed leveraged bitcoin ETF was also rejected by the securities regulator.